Connecticut 2016 Regular Session

Connecticut House Bill HB05022

Introduced
2/3/16  

Caption

An Act Concerning The Use Tax Payable On Casual Car Sales.

Impact

If enacted, the bill would provide a clear framework for determining the sales tax liabilities associated with casual sales of motor vehicles. Such clarity may benefit both buyers and sellers by reducing confusion around sales tax calculations, ensuring that the sales tax is based on a mutually agreed and documented price rather than a potentially arbitrary figure. This change is intended to alleviate the burden on individuals involved in private car sales and could result in more accurate tax assessments.

Summary

House Bill 05022 aims to amend the existing general statutes concerning the use tax payable on casual car sales between private individuals. The bill specifies that when two private parties agree on a price for a private passenger motor vehicle and document this agreement through a notarized document, this documented price will serve as the basis for calculating the sales tax due on the vehicle. This proposal reflects an effort to streamline the sales tax calculation process for private automobile transactions.

Contention

While the bill may provide advantages in terms of transparency and ease of use, opposition may arise from concerns about tax revenue impacts. Some stakeholders may argue that allowing a documented price as the basis for sales tax could open avenues for tax avoidance if valuations are manipulated to minimize taxable amounts. Critics may advocate for maintaining a stricter regulatory framework that limits potential abuses of the system, thus leading to discussions on how to balance consumer protections with the need for fair tax collection.

Companion Bills

No companion bills found.

Previously Filed As

CT HB05073

An Act Concerning The Sales And Use Taxes Imposed On Meals Sold By An Eating Establishment, Caterer Or Grocery Store.

CT HB05490

An Act Concerning The Sales And Use Taxes On Ambulance-type Motor Vehicles And Ambulances.

CT HB05042

An Act Concerning The Sales Price Threshold Of Motor Vehicles Subject To A Higher Sales And Use Taxes Rate.

CT HB05064

An Act Concerning The Sales Price Threshold Of Motor Vehicles Subject To A Higher Sales And Use Taxes Rate.

CT SB00030

An Act Concerning The Sales Price Threshold For Motor Vehicles Subject To A Higher Sales And Use Taxes Rate.

CT SB00083

An Act Concerning The Higher Sales And Use Taxes Rate Applicable To Certain Motor Vehicles.

CT SB00006

An Act Concerning Housing.

CT SB00269

An Act Reducing The Sales And Use Taxes For Certain Goods Used In New Housing Construction.

CT HB05026

An Act Concerning The Personal Income Tax Deduction For Social Security Benefits.

CT HB05035

An Act Concerning The Sales And Use Taxes Imposed On Meals Sold By Certain Eating Establishments.

Similar Bills

No similar bills found.